Islamic Finance Alliance Strengthens Global Trade Security.

Tuesday 8th July 2025

By inAfrika Reporter

A new partnership between the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Al Baraka Islamic Bank in Bahrain is advancing global trade confidence and security within the Islamic finance space. The two institutions signed a Documentary Credit Insurance Policy (DCIP), which insures Letters of Credit issued by Al Baraka for Shariah-compliant international trade.

This policy is more than just an insurance instrument; it’s a confidence booster for businesses in Islamic countries. By reducing the risk of payment defaults, it gives both exporters and importers a secure mechanism to transact across borders. The result is an ecosystem where trade flows are protected, and growth becomes sustainable.

ICIEC’s CEO, Dr. Khalid Khalafalla, emphasized that this partnership strengthens intra-OIC (Organisation of Islamic Cooperation) trade. With this collaboration, Al Baraka Islamic Bank will be better positioned to offer expanded financial solutions while adhering to Shariah principles. Their clients, in turn, can explore new markets without bearing the full weight of commercial or political risk.

CEO Dr. Adel Salem of Al Baraka noted that this policy will help Bahrain strengthen its role as a regional Islamic finance hub. The DCIP tool is expected to play a vital role in enabling banks to grow their trade portfolios, creating more inclusive economic outcomes in ICIEC’s member countries.